Sri Lanka: Stability at Home, Uncertainty Abroad

COLOMBO (News 1st); Governor of the Central Bank of Sri Lanka (CBSL), Dr. P. Nandalal Weerasinghe said that significant progress has been made in reducing domestic risks and uncertainties, particularly with the completion of the debt restructuring process and the successful third review of the International Monetary Fund (IMF) program.

The fourth review is currently underway, further solidifying the country's economic foundation.

"The government has announced that the new administration will continue on the same path, ensuring the continuation of the IMF program and the completion of debt restructuring," Dr. Weerasinghe said in an interview with Bloomberg on Wednesday (26), "Domestically, we are in a much better and less uncertain place."

The Governor highlighted that the government's efforts to stabilize the economy are in line with the current monetary policy stance, contributing to a more predictable and stable domestic environment.

However, Dr. Weerasinghe also pointed out several external uncertainties that could impact Sri Lanka's economy. These include potential changes in U.S. tariff policies, geopolitical issues, and fluctuating commodity prices. "We need to monitor these factors closely to assess their potential impact on our economy," he added.